Europe July SAN up by €70-100/tonne on higher feedstock values

15 July 2009 08:41  [Source: ICIS news]

LONDON (ICIS news)--European July styrene acrylonitrile (SAN) contracts have settled up by €70-100/tonne ($97-139/tonne) from June as a result of higher feedstock values, sources said late on Tuesday.

“Manufacturers took extremely tough stances due to higher feedstock values, which made resistance to increases difficult,” a buyer said.

Compounding-grade SAN was assessed at €1,300-1,350/tonne, while commercial grades were at €1,450-1,600/tonne, according to global chemical market intelligence service ICIS pricing.

Speciality grades rose by €50-100/tonne to €1,650-2,500/tonne.

All prices were on a free delivered (FD) northwest Europe (NWE) basis.

Producers had originally looked for increases of €120/tonne.

“This increase of around €100/tonne still won’t recover margins that have thinned since the start of the year,” a manufacturer said.

Continually rising feedstock costs in Europe would signal more price pushes in August and September, according to some buyers. But one trader was not so sure of this.

“Declining oil and feedstock prices in Asia, however, will result in an increase in European SAN imports from Asia, which might keep prices from rising,” said the trader.

Sellers said that SAN demand in Europe was holding up and had been boosted by a minor upturn in consumption from the automotive sector.

Buyers disagreed, saying that demand was weak, especially for compounding grade.

($1 = €0.72)

For more on SAN visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stuart Moir
+44 20 8652 3214

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